Changchai Company, Limited Third Quarter Report 2017 (Short Form)
Stock Code: 000570, 200570 Stock Name: Changchai A, Changchai B Announcement No. 2017-026
CHANGCHAI COMPANY, LIMITED
THIRD QUARTER REPORT 2017 (SHORT FORM)
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as
well as the directors, supervisors and senior management of Changchai Company, Limited
(the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents
of this Report, and shall be jointly and severally liable for any false representation, misleading
statements or material omissions in this Report.
All the directors of the Company attended the board meeting for the review of this Report.
Shi Xinkun, head of the Company, Zhang Xin, accounting head for this Report, and Jiang He,
head of the accounting department (head of accounting) of the Company, hereby guarantee
that the financial statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
September 30, 2017 December 31, 2016 Change
Total assets (RMB) 3,796,065,908.97 3,724,857,266.71 1.91%
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
Equity attributable to owners
2,307,945,906.41 2,323,712,892.92 -0.68%
of the parent (RMB)
July-September January-September
YoY change YoY change
2017 2017
Net sales (RMB) 551,411,429.29 -8.89% 1,859,517,610.21 5.13%
Net margin attributable to
3,072,285.14 -84.71% 42,751,443.27 -22.42%
owners of the parent (RMB)
Net margin attributable to
owners of the parent before
629,008.33 -96.81% 21,403,055.82 -55.62%
exceptional gains and losses
(RMB)
Net cash from operating
-- -- -61,051,973.62 ——
activities (RMB)
Basic earnings per share
0.01 -75.00% 0.08 -20.00%
(RMB/share)
Diluted earnings per share
0.01 -75.00% 0.08 -20.00%
(RMB/share)
Weighted average return on
0.13% -0.82% 1.85% -0.73%
equity (%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Gains/Losses on disposal of non-current
assets (inclusive of offset asset impairment
provisions) 781,459.40
Governmental subsidy recorded into current
gains/losses (exclusive of governmental
subsidy closely relevant to business events,
and quantified according to national unified
standards) 3,097,441.57
The ownership transfer formalities
Profit due to situation where investment costs regarding the Company’s acquisition
for the Company to obtain of equity interest of Changzhou Fuji
subsidiaries,associates and joint ventures are Changchai Robin Gasoline Engine
22,756,742.66
lower than Co., Ltd. (Changchai Robin) were
enjoyable fair value of identifiable net assets completed on January 20, 2017. As
of investees when making investments such, from that date Changchai Robin
has been consolidated by the
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
Company. Since the closing cost of
this equity acquisition was lower than
the appraisal, this transaction
generated a premium of
RMB22,756,742.66.
Gains/Losses on fair value changes of trading
financial assets and liabilities & investment
income from disposal of trading financial
assets and liabilities as well as financial assets 482,684.24
available for sale (exclusive of effective
hedges related to normal business operations
of the Company)
Non-operating income and expense other than
-5,834,733.51
above
Less: Income tax effects 23,208.39
Minority interests effects (after tax) -88,001.48
Total 21,348,387.45 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the
said explanatory announcement as a recurrent gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of common Total number of preference shareholders
52,641 0
shareholders at period-end with resumed voting rights at period-end
Top 10 shareholders
Shareholdi Total shares Restricted Pledged or frozen shares
Nature of
Name of shareholder ng held at shares held at
shareholder Status Number
percentage period-end period-end
STATE-OWNED
On behalf of
ASSETS SUPERVISION
the 30.43% 170,845,236
AND
government
ADMINISTRATION
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
COMMISSION OF
CHANGZHOU
MUNICIPAL PEOPLE’S
GOVERNMENT
Domestic
LEI PING’AN 0.73% 4,093,998
individual
Foreign
KGI ASIA LIMITED 0.57% 3,189,845
corporation
YUNNAN
INTERNATIONAL
TRUST CO., LTD －
Other 0.47% 2,618,658
SHENGJIN No. 36
COLLECTION FUND
TRUST PLAN
GUANGDONG
FINANCE TRUST CO.,
LTD － FINANCE
Other 0.34% 1,911,934
TRUST－JUXIN NO. 3
COLLECTION FUND
TRUST PLAN
Domestic
PENG JUN 0.32% 1,800,000
individual
VANGUARD TOTAL
Foreign
INTERNATIONAL 0.29% 1,626,592
corporation
STOCK INDEX FUND
Domestic
HUANG GUOLIANG 0.27% 1,528,891
individual
Domestic
LIANG NIANYOU 0.24% 1,362,652
individual
Domestic
LI SUINAN 0.24% 1,338,700
individual
Top 10 non-restricted shareholders
Non-restricted shares Type of stock
Name of shareholder
held at period-end Type Number
STATE-OWNED ASSETS SUPERVISION AND
ADMINISTRATION COMMISSION OF
170,845,236 RMB common stock 170,845,236
CHANGZHOU MUNICIPAL PEOPLE’S
GOVERNMENT
LEI PING’AN 4,093,998 RMB common stock 4,093,998
Domestically listed
KGI ASIA LIMITED 3,189,845 stock for foreign 3,189,845
investors
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
YUNNAN INTERNATIONAL TRUST CO., LTD－
SHENGJIN No. 36 COLLECTION FUND TRUST 2,618,658 RMB common stock 2,618,658
PLAN
GUANGDONG FINANCE TRUST CO., LTD －
FINANCE TRUST－JUXIN NO. 3 COLLECTION 1,911,934 RMB common stock 1,911,934
FUND TRUST PLAN
PENG JUN 1,800,000 RMB common stock 1,800,000
Domestically listed
VANGUARD TOTAL INTERNATIONAL STOCK
1,626,592 stock for foreign 1,626,592
INDEX FUND
investors
Domestically listed
HUANG GUOLIANG 1,528,891 stock for foreign 1,528,891
investors
LIANG NIANYOU 1,362,652 RMB common stock 1,362,652
Domestically listed
LI SUINAN 1,338,700 stock for foreign 1,338,700
investors
It is unknown whether there was any associated
relationship among the top ten tradable shareholders and
Related or acting-in-concert parties among among the top ten shareholders not subject to trading
shareholders above moratorium, or whether they are persons acting in concert
as described by Measures for the Administrative of
Disclosure of Shareholder Equity Changes.
The shareholder Lei Ping’an held 4,093,998 shares of the
Company through customer credit collateral securities
trading account of Guosen Securities Co., Ltd, with the
Top 10 common shareholders conducting securities proportion of the share holding of 0.73%; The shareholder
margin trading Peng Jun held 1,800,000 shares of the Company through
customer credit collateral securities trading account of
Haitong Securities Co., Ltd, with the proportion of the
share holding of 0.32%.
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
1. Selected Items in Consolidated Balance Sheet as of September 30, 2017
Unit: RMB
September 30, December 31,
Change Main reason for change
2017 2016
In nine months ended September 30, 2017,
credit sale was properly carried out to extend
Accounts market space; and most multi-cylinder engine
789,836,525.99 359,279,821.69 119.84%
receivable customers were supporting manufacturers for
bigger enterprises, which means relatively long
account ages for the Company
Prepayments to suppliers of certain materials
Prepayments 25,542,981.62 15,483,475.43 64.97%
were increased to satisfy market needs
Other Temporary loans granted by subsidiary
accounts 17,227,301.11 4,165,674.62 313.55% Housheng Investment to Xuzhou Huadong
receivable Foundry Factory, etc.
Other current
19,683,519.73 39,669,983.12 -50.38% Decrease in overpaid VAT
assets
Short-term
29,900,000.00 10,000,000.00 199.00% Increase in bank loans of subsidiaries
borrowings
A bank loan of RMB20 million was obtained
by the parent company in the current period for
Long-term
20,000,000.00 0.00 —— the R&D and industrialization of State III/State
borrowings
IV-level high-horsepower efficient agricultural
diesel engines
Advances Certain customers were required to pay greater
74,492,032.02 40,890,620.69 82.17%
received advances
Salaries and bonuses accrued in the nine
Payroll months ended September 30, 2016 were mostly
26,207,076.54 58,549,908.90 -55.24%
payable paid in the corresponding period of the current
year
2. Selected Items in Consolidated Income Statement for January-September 2017
Unit: RMB
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
January-September January-September
Change Main reason for change
2017 2016
Increase in foreign exchange income
Finance costs -1,287,876.55 -6,869,369.26 ——
resulted from exchange rate fluctuations
Dividends received on the Bank of
Jiangsu stock and the Foton Motor
stock increased. And the Company
increased its investment in Fuji Robin
Investment to become its controlling shareholder.
13,407,484.45 3,491,931.65 283.96%
income And therefore, the Company’s original
holding in Fuji Robin was measured at
fair value, and the difference between
the fair value and the carrying value
was charged to investment income
Income arising from including
Changzhou Fuji Changchai Robin
Non-operating Gasoline Engine Co., Ltd., whose
25,903,268.01 14,014,264.30 84.84%
income equity interests the Company acquired
at a discount, into the consolidated
financial statements
3. Selected Items in Consolidated Cash Flow Statement for January-September 2017
Unit: RMB
January-September January-September
Change Main reason for change
2017 2016
Net cash from
operating -61,051,973.62 71,161,321.84 —— Increased accounts receivable
activities
The parent company had withdrawn
Net cash from investments in wealth management
investing -63,559,009.38 -41,248,683.31 -54.09% products in January-September
activities 2016, while there was no such event
in the current period
Net cash from
Increase in bank loans of the parent
financing 21,794,509.81 -22,454,068.45 ——
company and subsidiaries
activities
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Summary of significant event Disclosure date Related announcement
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
The Company and Synergetic Innovation Fund
Management Co., Ltd. jointly incorporated
09/26/2017, 10/19/2017 No. 2017-022,023,024 and 025
Changzhou Synergetic Innovation Private Equity
Fund (Limited Partnership)
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
√ Applicable □ Not applicable
Date of Period of
Commitment Type of
Commitment Contents commitment commitm Fulfillment
maker commitment
making ent
Commitments made in
share reform
Commitments made in
acquisition documents or
shareholding alteration
documents
Commitments made in time
of asset restructuring
Commitments made in time
of IPO or refinancing
Equity incentive
commitments
Rewards Plan
for Shareholders
in Next Three
Years(2017-201
9)
Under the
premise of
positive
distributive
Year Implement
Other commitments made Changchai profit
Company, bonus (remaining 05/11/2017 2017-201 in a normal
to minority shareholders
Limited after-tax profits
9 way
after making
up for the loss
and extracting
for the
common
reserves) in
this year or
half year and
abundant
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
money flow
and no
influence on
the
following-up
going concern
after cash
bonus, the
profits
allocated by
cash every year
shouldn’t be
lower than
10% of the
allocable
profits from
parent
company.
Meanwhile, the
accumulated
allocable
profits by cash
in the arbitrary
continuous
three
accounting
years should
not be lower
than 30% of
the annual
average
allocable
profits in those
three years.
Fulfilled on time Yes
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period
the beginning of the current year through the end of the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Progress situation of SOE reform of the
09/21/2017 Other Individual
Company
09/14/2017 Other Individual Future development plan of the Company
Situation of associated enterprises of the
09/14/2017 Other Individual
Company
09/13/2017 Other Individual Operation situation of the Company
08/27/2017 Other Individual Future development plan of the Company
08/21/2017 Other Individual Situation of SOE reform
08/04/2017 Other Individual Number of shareholders
08/03/2017 Other Individual Number of shareholders
07/25/2017 Other Individual Stock situation of the Company
07/24/2017 Other Individual Operation situation of the Company
Progress situation of SOE reform of the
07/24/2017 Other Individual
Company
07/21/2017 Other Individual Operation situation of the Company
07/20/2017 Other Individual Number of shareholders
07/06/2017 Other Individual Situation of SOE reform
Situation of the Company’s holding of
06/22/2017 Other Individual
stock of Jiangsu Bank
Situation of the Company’s holding of
06/05/2017 Other Individual
stock of Jiangsu Bank
05/24/2017 Other Individual Future development plan of the Company
05/10/2017 Other Individual Future development plan of the Company
05/09/2017 Other Individual Future development plan of the Company
05/08/2017 Other Individual Product situation of the Company
05/02/2017 Other Individual R&D situation of the Company
04/27/2017 Other Individual Operation situation of the Company
Changchai Company, Limited Third Quarter Report 2017 (Short Form)
04/24/2017 Other Individual Future development plan of the Company
Production and operation situation of the
04/24/2017 Other Individual
Company
04/17/2017 Other Individual Future development plan of the Company
04/13/2017 Other Individual Future development plan of the Company
04/05/2017 Production and operation situation of the
Other Individual
Company
Production and operation situation of the
04/05/2017 Other Individual
Company
03/30/2017 Other Individual Future development plan of the Company
Production and operation situation of the
02/28/2017 Other Individual
Company
Production and operation situation of the
01/17/2017 Other Individual
Company
Future development strategy of the
01/07/2017 Other Individual
Company
Progress situation of SOE reform of the
01/06/2017 Other Individual
Company
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.